Reduce Home Loans cuts fixed and variable home loan rates
Online lender, Reduce Home Loans has today announced it will be cutting both fixed and variable rates across its suite of home loan products.
Existing customers on Reduce’s flagship securitised program - mortgages that are used as security for investment bonds for investors - will have their variable rate cut by an additional 10 basis points, which according to Reduce is a total of 35 basis points cut since the RBA rate cut at the start of March.
But while variable home loan rates for new customers haven’t changed, they do still remain as some of the lowest variable rates in the Mozo database.
The Reduce Home Loan variable rates for new customers are as follows:
Rate Lovers Variable Home Loan 2.52% (2.52% comparison rate*)
Investor Rate Slasher Variable 2.79% (2.83% comparison rate*)
Investor Rate Lovers Variable 2.84% (2.84% comparison rate*)
The lender also made adjustments to its Home Owner’s Dream fixed rates, bringing its 1, 2 and 3 year terms to a rock bottom 2.09% (up to 2.68% comparison rate*), making them some of the lowest fixed rates in the Mozo database.
According to Reduce Home Loans General Manager, Josh Beitz, the decision to decrease rates further was made to help Aussie customers save every dollar possible during these extraordinary times.
“The disruption and uncertainty of the global economy has greatly impacted credit markets causing rising funding costs and even causing credit markets to freeze," he said.
“But now more than ever in these uncertain times we want to particularly take care of our existing customers by reducing home loan rates for a second time this month on our flagship program.”
Want a closer look at a couple of Reduce’s hot home loan offers? You got it! Check out our quick review below.
Reduce Home Loans - Rate Lovers Variable Home Loan
- 2.52% variable rate (2.52% comparison rate*)
- 100% offset account
- Double 2020 Mozo Experts Choice Award winner^
If you’ve been holding out for a home loan that’s full of value and handy features, allow us to introduce you to the Reduce Home Loans Rate Lovers Variable Home Loan. This award-winning home loan for Best Low Cost Loan and Best Offset Home Loan features a competitive 2.52% variable rate (2.52% comparison rate*), an 100% free offset account and flexible repayment options. Plus you may be able to reduce your interest payments further by either making extra repayments or using the offset account. Just keep in mind you will need a 20% deposit to be eligible.
Reduce Home Loans - Home Owners Dream Fixed
- Super low 2.09% two year fixed rate (up to 2.68% comparison rate
- No application or service fees
- Free extra repayments (up to $20,000 p.a)
The Reduce Home Loans Fixed Rate Home Loan is also known as the ‘Home Owners Dream’ loan, and it’s not hard to see why. This fixed rate home loan features a super low 2.09% two year fixed rate(up to 2.68% comparison rate*), however borrowers can also choose to fix their home loan for one or three years and receive the same rate. There are no application or ongoing fees to worry about, you’ll be able to make additional repayments to your loan at no extra cost (up to $20,000 p.a) and have an optional offset account ($10 a month). But what really makes this home loan a dream is the 0.20% rate loyalty discount that’s automatically applied after your loan’s fifth anniversary!
Want to find out how these home loan offers stack up to others in the market? Head on over to our home loan comparison tool!
^More information about our 2020 Mozo Experts Choice Home Loan Awards
* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.
** Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.
^See information about the Mozo Experts Choice Home Loan Awards
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